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Releasing deposit from buy to let home

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Author Topic: Releasing deposit from buy to let home  (Read 429 times)
Newbie
Posts: 1

I like property

« on: February 23, 2019, 04:37:15 PM »

Hi,

We paid 25% deposit for our buy to let property. We have now been renting this house out for 2 years. In order to help towards the purchase of a second buy to let house, is it possible to release some of the 25% deposit, or does this have to be left?

Thanks
Global Moderator
Sr. Member
Posts: 365

I like poetry

« Reply #1 on: February 24, 2019, 02:30:21 PM »

In theory you could re-mortgage, if you're not currently in a fixed term and/or don't mind the cost, but BTL lenders don't like small deposits, especially given the current state of the market so, unless the property has increased substantially in value over the past two years, you'll probably find yourself with a very limited choice of lenders, all of whom will want a higher interest rate to compensate for the extra risk.

Personally, I'd be very cautious about increasing my exposure, given the likelihood of property prices going south in the next year or so.
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